Labor-Intensive Industries
Kenlee Hess: Immigrants improve American economy
For many years, immigration has played a huge part in the building of our country. The 1880 industrial boom brought the first big wave of immigrants to the United States. The wave continues today, with people seeking opportunity and the desire to have the “American Dream.” Work and schooling provide… Read More
Immigration Enforcement without Reform Hurts Farms
As the U.S. House of Representatives takes up immigration changes that could make farm labor harder to find, American Farm Bureau Federation is asking for reform first and urging citizens to learn the positive impact immigrants have in their state. On Thursday, AFBF tweeted a link to an interactive map by… Read More
NY Farm Bureau favors immigration reform
WASHINGTON – The “secure the border first” approach advocated by many congressional Republicans doesn’t work for the New York Farm Bureau. Farm Bureau President Dean Norton was in Washington Wednesday to reinforce his organization’s support for comprehensive immigration reform. Owners of New York dairies and other farms that rely on… Read More
Without Immigration Fix, Many Dairies Struggle To Find Employees
When Jon Slutsky’s dairy farm in Wellington, Colorado is fully staffed, it’s a moment to celebrate. A full roster of employees at Slutsky’s La Luna Dairy is rare these days. “We’re doing really well with our employee base,” Slutsky said. “A year ago, we couldn’t say that. We were short.” With… Read More
Without immigration fix, many dairies struggle to find employees
When Jon Slutsky’s dairy farm in Wellington, Colo. is fully staffed, it’s a moment to celebrate. A full roster of employees at Slutsky’s La Luna Dairy is rare these days. “We’re doing really well with our employee base,” Slutsky said. “A year ago, we couldn’t say… Read More
Yogurt boom, labor shortage puts New York dairy industry in middle of immigration debate
Thanks to a spike in yogurt consumption and production, the dairy industry in New York is booming. But with that comes an issue of its own: where to find workers. New York is now the third largest state for U.S. dairy production, trailing only dairy kings… Read More
Ag sector woes
So how was the dinner salad last night? Fresh, green lettuce? Maybe crunchy miniature carrots? Piquant cherry tomatoes? Our impertinent questions come to mind in the wake of a visit to the Chronicle editorial board last week by Agriculture Secretary Tom Vilsack. The former Iowa governor reminded us that of the… Read More
Immigration Reform Needed to Boost Small Business Workforce
The U.S. House of Representatives passed legislation recently that seeks to revoke the president’s recent executive actions on immigration reform, which is disappointing news for small employers looking for qualified workers. We know from our polling that having access to a qualified workforce is of paramount importance to entrepreneurs looking… Read More
The Most Entrepreneurial Group in America Wasn’t Born in America
Derek Cha arrived in America as a 12-year-old with his parents and three siblings. They came for familiar reasons: “In 1977, South Korea was a poor country,” Cha says. “My parents were looking for better opportunities and education for us.” After the family settled in California, his mother worked as… Read More
Eat vegetables? Support immigration reform
The Republican Congress needs to act on immigration, and stop simply reacting to the president. It should act for the right reasons. Bedrock Republican reasons. This shouldn’t be about currying favor with Latino voters to smooth the way for the 2016 Republican presidential candidate. That’s important, but it’s not the… Read More
Demographic Shifts
Over the last two decades, the size of the U.S.-born population with a high school degree or less has significantly decreased. This trend is particularly evident among young workers, ages 25-44, the group typically most capable of doing physically demanding work. As this population declined, however, the number of jobs for workers with that education level held steady. Thus, real and persistent gaps in the American workforce have opened up, especially in agriculture, hospitality, and meatpacking. Foreign-born workers—a group considerably more likely than natives to lack education beyond high school—step in to fill those jobs that would otherwise remain vacant.
Sources:
1 New American Economy, “A Crucial Piece of the Puzzle: Demographic Change and Why Immigrants are Needed to Fill America’s Less-Skilled Labor Gap,” March 2014. Available online.
2 Bureau of Labor Statistics, National Industry-Occupation Employment Matrix 2014-2024, April 2016. Available online.
Educational Breakdown of Foreign-Born and Native-Born Populations, 2014
Occupations Dependent on Immigrants
The foreign-born make up 16.5 percent of the working-age population in the United States. In some particularly labor-intensive fields, their role is much greater. From 2008 to 2012, for instance, immigrants made up 72.9 percent of field and crop workers. In other large industries, such as construction, foreign-born workers frequently take on the most physically demanding roles, while U.S.-born workers frequently prefer positions that require more English-language skills or experience in management or customer service. In fact, of the top 10 occupations with the largest share of immigrant workers, nine of them are labor-intensive in nature or involve repetitive, manual tasks.
Sources:
3 Author’s analysis of 2015 American Community Survey data.
Top 10 Occupations with Highest Share of Immigrant Workers, 20153
Help Wanted
Across communities and industries, employers report trouble finding enough workers. Between 2002 and 2014, the number of field and crop workers in America declined by 146,000, causing major labor shortages on U.S. farms. A rapidly aging population also strains the healthcare workforce, a problem likely to worsen as more Baby Boomers retire. In many fields, immigrants can and do help businesses find the workers they need to compete and grow.
Sources:
4 “2016/2017 Talent Shortage Survey: The United States Results,” ManpowerGroup, n.d., Available online.
5 Home Care Pulse. “2015 Private Duty Benchmarking Study.” April 2015.
6 New American Economy, "International Harvest: A Case Study of How Foreign Workers Help American Farms Grow Crops – and the Economy," May 2013. Available online.
Jobs Americans Won’t Do: Evidence from the North Carolina Farming Industry, 20116
The Impact on American Workers
Although long a controversial issue among academics and policymakers, there is widespread evidence that the presence of more immigrants with relatively low levels of education does not substantially displace U.S.-born workers. Instead, a greater supply of less-skilled immigrants is linked to a decrease in offshoring7 and an expansion of firms on U.S. soil8—resulting in net benefits for U.S.-born workers across the board. The unique way in which immigrants frequently slot into the workforce—gravitating toward more manual or repetitive tasks—also means an influx of less-skilled immigrants has only a moderate impact, if any, on the wages of less-educated U.S.-born workers, particularly over the long term. Instead, they compete most directly with other immigrant workers.9
Sources:
7 Gianmarco I.P. Ottaviano, Giovanni Peri, and Greg C. Wright, “Immigration, Offshoring and American Jobs," National Bureau of Economic Research, October 2010. Available online.
8 William W. Olney, “IMMIGRATION AND FIRM EXPANSION,” Journal of Regional Science 53 (2013), doi:10.1111/jors.12004.
9 Heidi Shierholz, “Immigration and Wages: Methodological Advancements Confirm Modest Gains for Native Workers,” February 4, 2010. Available online.
10 Ibid.
11 Findings come from an NAE report that examines the benefit of a one standard deviation increase in birthplace diversity among workers in the bottom half of all earners in a given workplace or metropolitan area. More details can be found in the full report, available here.
12 Based on an analysis of 1998-2008 data; William W. Olney, “IMMIGRATION AND FIRM EXPANSION,” Journal of Regional Science 53 (2013), doi:10.1111/jors.12004.
Estimated Impact of Immigration on the Wages of Less-Educated Workers, 1994-200710
Wage Impact Felt by Employees in the Same Workplace or City When the Lowest Paid Workers Become More Internationally Diverse11
Number of New Establishments that are Created when the Share of Less-Educated Immigrants in a Metropolitan Area Rises by 10 Percent12
Costs of a Farmworker Shortage
In 2014, more than 56 percent of entry-level farmworkers in the United States were immigrants. Given this, changes in immigrant labor supply tend to ripple across the U.S. agriculture economy. In the last decade, a 75 percent slowdown in the arrival of young, low-skilled immigrant farmworkers meant shortages for entry-level field and crop positions. Many farmers report that the H-2A visa program, which allows the recruitment of foreign-born farmworkers, is too cumbersome and expensive—leaving them few ways to replenish their workforce. The result is many farms cutting their production of fresh fruits and vegetables.13
Sources:
13 “NCAE Survey of 2010 H-2A Employers - Final Summary," National Council of Agricultural Employers, December 2011. Available online.
Decline of Field and Crop Workers in Key States, 2002-2014
Inadequate Visa Programs
Although immigrants already help fill gaps in the U.S. labor force, our current immigration system does not allow employers to recruit enough of the specific workers they need. Employers can sponsor low-skilled workers for an agricultural visa (the H-2A visa), or for a visa designed to meet seasonal demand at venues like hotels, amusement parks, and ski resorts (the H-2B visa). Both programs, however, are cumbersome and outdated. And many of the fields that struggle the most to find workers, including healthcare and construction, lack a dedicated visa altogether. Improvements must be made so more industries—and specific geographies—can recruit temporary foreign-born workers when no Americans are available for the job.
Sources:
14 “NCAE Survey of 2010 H-2A Employers - Final Summary, "National Council of Agricultural Employers, December 2011. Available online.
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